What do you do if you own a pizza restaurant that don’t offer delivery, but suddenly DoorDash, one of the big online food-delivery companies, will deliver your pizzas without permission? What if you also notice that DoorDash will sometimes charge the user less for the pizza then they pay your restaurant?
If someone could pay Doordash $16 a pizza, and Doordash would pay his restaurant $24 a pizza, then he should clearly just order pizzas himself via Doordash, all day long. You’d net a clean $8 profit per pizza [insert nerdy economics joke about there is such a thing as a free lunch].
(For reference: Doordash lost lost 450 million USD in 2019 with about $1 billion of revenue – wonder why?)